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Author Question: What is a surplus? What is a shortage? What will be an ideal ... (Read 71 times)

kellyjaisingh

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on: Jun 29, 2018
What is a surplus? What is a shortage?
 
  What will be an ideal response?

Question 2

In 2015, some banks in Europe had to make interest payments to borrowers rather than receive interest payments from borrowers. Which of the following statements describes this situation?
 
  A) For these banks, the loans increased required reserves.
  B) For these banks, the loans were liabilities instead of assets.
  C) These banks were receiving negative nominal interest rates on these loans.
  D) All of the above are correct.


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chereeb

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A surplus is a situation in which the quantity supplied is greater than the quantity demanded. A shortage is a situation in which the quantity demanded is greater than the quantity supplied.

Answer to Question 2

C


kellyjaisingh

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Reply #2 on: Jun 29, 2018
Thank you


chereeb

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Reply #3 on: Jun 29, 2018
No problemo


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